Ending International Fossil Fuel Subsidies

We are catalyzing a growing movement of citizens and governments around the world to put an end to the hundreds of billions of dollars in government handouts to the fossil fuel industry.

Every year, some $775 billion or more in subsidies around the world go towards fossil fuels. In a time of economic hardship, dangerous climate change, and growing demand for reliable and cleaner sources of energy, these fossil fuel subsidies are a reckless and irrational use of taxpayer money and government investments.

In part recognizing this fact, global leaders from over 50 countries have made public commitments to phase out these subsidies in the “medium term”… but as with many commitments political leaders make, these have gone unfulfilled. Governments are busy hiding their subsidies and feigning activity… while billions of money is wasted and the atmosphere gets filled with greenhouse gas emissions and the planet burns.

Challenges
There are a few important battles to be waged if we are going to win the fight against fossil fuel subsidies:

The power of the fossil fuel industry: As we’ve seen time and time again, the fossil fuel industry has a stranglehold on policy makers all around the world… and they love these handouts. We need to break this cycle.

Lack of information about fossil fuel subsidies. It’s hard to fight what you don’t know – and we don’t have all the information on fossil fuel subsidies. An important step will be to get governments to share information on subsidies.

Misinformation about the impacts of fossil fuel subsidies. Subsidies, especially in developing countries, are often sold as support for the poor… when in fact they most often benefit the wealthier classes in these countries. Decisionmakers and the public need to understand this better.

We need more noise! Governments aren’t hearing the global outcry as loudly as they need to feel pressured to act.

Solutions
Oil Change International is working with our partners around the world to ensure fossil fuel subsidies are phased out as quickly as possible, by pushing for:

Low Hanging Fruit: Fossil Fuel Subsidies, Climate Finance, and Sustainable Development. Oil Change International for the Heinrich Boll Foundation in association with Vasudha Foundation (India), Greenovation Hub (China) and the Natural Resources Defense Council, June 2012. This report provides updated estimates of global fossil fuel subsidies and overviews many of the issues surrounding subsidy removal. The figure for production and consumption subsidies is at least $775 billion annually and could be $1 trillion or even more. There is an urgent need for transparency in subsidy reporting.